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Global Political Shifts Reshape the World Stage

As we step into 2025, the political landscape is undergoing significant shifts.

The most prominent event as this year begins is Donald Trump’s inauguration as the 47th President of the United States on January 20, marking a historic non-consecutive second term. The festivities are set to be grand: various receptions and rallies are planned from January 18 to 20, leading to the traditional swearing-in ceremony.

Across the border, another major democracy is experiencing significant changes. In Canada, Prime Minister Justin Trudeau unexpectedly announced his resignation on January 6, citing the need for a “reset” in Canadian politics.

Meanwhile, in Europe, Poland has assumed the presidency of the Council of the European Union for the upcoming six months, focusing on strengthening European security and defense amidst ongoing regional conflicts. Other challenges are darkening the horizon, with recent government collapses in both Germany and France weakening the Union. The traditional Franco-German tandem, long considered the cornerstone of the European project, is under strain. This instability comes at a critical time, as Europe grapples with potential trade wars and heightened military spending demands from the incoming Trump administration. In response, the European Commission, led by Ursula von der Leyen in her second term, is taking a more prominent role in international affairs.

As these political dynamics unfold, investors and policymakers alike will watch their developments closely and try to anticipate their impact on global markets, trade relations, and geopolitical stability.

Sources: 2025 Foreign Policy Calender, BFPG; What lies ahead for the EU in 2025, Deutsche Welle; Here’s what to know about Donald Trump’s inauguration, BBC

Nolwenn Deparpe January 22, 2025

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